British inflation is falling to its lowest level since 2016

Data released by the Office for National Statistics today showed that UK inflation fell 0.8% year-on-year in the twelve months to April, compared to 1.5% in March, while core inflation excluding food, energy, alcohol and tobacco components was 1.5% year-on-year in April.

Retail price inflation, which is widely used in bond and other commercial contracts, fell to 1.5% in April from 2.6% recorded in March, and retail clothing sales declined year on year by 2.9% in April.

The Bank of England increased its bond purchase program by a record record of 200 billion pounds in March amid the coronary virus pandemic Covid 19, and markets expect that the British central bank may cut interest rates to below zero for the first time at the end of the year.